April 3, 2026 / New York, NY / National investment loss and securities law firm KlaymanToskes is investigating potential claims on behalf of investors in the private credit market, including investors in private credit funds and other private credit-related investment products.
Investors who were recommended private credit investments by their financial advisor or brokerage firm, and who now have concerns regarding liquidity, valuation, suitability, or redemption restrictions, are encouraged to contact KlaymanToskes at (888) 997-9956 for a free and confidential consultation to discuss their legal rights and potential recovery options.
Several private credit vehicles have faced elevated redemption requests in recent months amid broader credit market uncertainty and concerns regarding the valuation and liquidity of private loans. Recent reports indicate that investors in Morgan Stanley’s North Haven Private Income Fund sought to redeem nearly 11% of shares outstanding during the most recent quarterly redemption period. Under the fund’s structure, Morgan Stanley is generally required to repurchase approximately 5% of units outstanding per quarter, consistent with the fund’s offering documents.
The fund reportedly returned approximately $169 million, representing about 45.8% of investor redemption requests, resulting in limited liquidity and leaving some investors unable to fully exit their positions. Reports indicate that redemption requests exceeded the fund’s repurchase capacity, leading to partial withdrawals and highlighting liquidity constraints within the private credit market.
KlaymanToskes is investigating whether financial advisors and brokerage firms conducted proper due diligence before recommending private credit investments and whether investors were adequately informed about the material risks, including liquidity restrictions, valuation uncertainty, limited redemption rights, and the potential for losses.
“Private credit has been marketed to many retail investors as a stable, yield-generating alternative to traditional fixed income,” said Lawrence L. Klayman, Esq. of KlaymanToskes. “However, the illiquid nature of these investments and the restrictions on redemptions can create significant challenges that may not have been fully disclosed or properly assessed for suitability.”
Investors who suffered losses in private credit funds recommended by their financial advisor or brokerage firm are encouraged to contact attorney Lawrence L. Klayman at (888) 997-9956 or by email at investigations@klaymantoskes.com for a free and confidential consultation to discuss potential recovery options.
About KlaymanToskes
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $600 million in Securities Litigation and FINRA Arbitration matters. KlaymanToskes has office locations in California, Florida, Nebraska, New York, and Puerto Rico.
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Contact
Lawrence L. Klayman, Esq.
KlaymanToskes, PLLC
+1 888-997-9956
investigations@klaymantoskes.com
